BOSTON ( TheStreet) -- As investors seek safety in blue-chip stocks, many top small-caps are trading at discounts. Here are five cheap stocks with strong fundamentals.

5. Cantel Medical Corp. ( CMN) sells infection prevention and control products.

The numbers: Fiscal first-quarter profit surged 85% to $6.2 million, or 37 cents a share. Revenue climbed 10% to $71 million. Cantel's gross margin rose from 41% to 46%, and its operating margin widened from 10% to 15%. The company has a stable financial position, with $23 million of cash and $38 million of debt.

The stock: Cantel Medical Corp. has advanced 40% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 19, a discount to the market and health care equipment peers. The company doesn't pay dividends.

4. Peet's Coffee & Tea ( PEET) operates a chain of cafes and sells roasted beans in supermarkets.

The numbers: Third-quarter profit increased 22% to $2.5 million, or 19 cents a share. Revenue grew 8% to $74 million. The company's gross margin rose from 18% to 19%, but its operating margin was unchanged at 5%. Peet's has an ideal financial position, with $21 million of cash and no debt.

The stock: Peet's has risen 39% this year, matching the gain of the Nasdaq Composite. The stock trades at a price-to-earnings ratio of 33, a premium to the market and restaurant peers. Peet's Coffee & Tea doesn't pay dividends.

3. German American Bancorp ( GABC) is a bank in southern Indiana.

The numbers: Third-quarter profit decreased 4% to $3.2 million, or 29 cents a share. Revenue dropped 4% to $20 million. German American Bancorp's gross margin rose from 66% to 71%, and its operating margin increased from 31% to 32%. The company is adequately capitalized, with $60 million of cash reserves. A debt-to-equity ratio of 1.3 indicates higher-than-ideal leverage.

The stock: German American Bancorp has increased 41% this year, more than major U.S. indices. The stock trades at a price-to-earnings ratio of 14, a discount to the market and regional bank peers. The shares have a 3.5% dividend yield.

2. American Physicians Service Group ( AMPH) sells medical liability insurance and manages investments.

The numbers: Third-quarter profit fell 10% to $6.4 million, or 92 cents a share. Revenue grew 13% to $22 million. The company's gross margin fell from 64% to 49%, and its operating margin decreased from 56% to 43%. American Physicians Service Group has an admirable financial position, with $30 million of cash and $6.6 million of debt.

The stock: American Physicians Service Group has risen 8% this year, underperforming major U.S. indices. The stock trades at a price-to-earnings ratio of 9, a discount to the market and insurance peers. The shares have a 1.3% dividend yield.

1. Hawkins ( HWKN) sells specialty chemicals.

The numbers: Fiscal second-quarter profit declined 2% to $6.7 million, or 65 cents a share. Revenue dropped 17% to $65 million. The company's gross margin rose from 24% to 29%, and its operating margin ascended from 14% to 17%. Hawkins has an ideal financial position, with $37 million of cash and no debt.

The stock: Hawkins has rallied 40% this year, beating major U.S. indices. The stock trades at a price-to-earnings ratio of 9, a discount to the market and chemical peers. The shares have a 2.6% dividend yield.

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